EUR/USD Plummets Below 1.24; Eyes June Low at 1.2285

The EUR/USD fell below 1.25 ahead of the ECB interest rate meeting, and accelerated after the expected rate cut and Mario Draghi's press conference. It plummeted below 1.24 after the opening bell in the 7/5 US session.The decision to cut the benchmark rate to 0.75% from 1.0% brings it to a historic low. Also The deposit rate was cut to 0. Draghi sounded dovish during the press conference, as if leaving open another rate cut down the line this year.

The break below 1.24 opens up June's low of 1.2285, established on June 1. This might provide some support ahead of tomorrow's event risk in the US non-farm payroll release at 8:00AM EDT, but note that the technical condition in the daily chart is sideways to bearish.

To the upside, the 1.25 level which was a support pivot during the earlier part of the 7/5 European session can become a key resistance to monitor ahead of the NFP in the scenario that risk returns and EUR/USD pulls back. After such a sharp sell-off, earlier resistance pivots at 1.24, and 1.2450 should be monitored as well for resistance, but a break above 1.25 clouds up the bearish scenario.

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